1. Oysters, Tas, Australia
& smart investing for the Australian Oyster Industry

2. In 18 min . . .
Oysters Australia?
R&D good for Tas?
Retail Transformation early results (for De Costi – 8min)
Benchmarking – Carlyn (later)
Breeding – Peter Kube & Matt Cunningham (next)
Tas, Australia (NSW vs Tas vs SA?)
Big picture . . . .and immediate

3. Oysters Australia?
When?
2011, ‘formalising’
the 2007-2011
Seafood CRC Oyster
Consortium
Who?
NSW, SA & Tas (R&D and policy
bodies in each state)
Plus Qld and commercial body
investors on R&D
Why?
for national advocacy,
research and
development
The job?
• increase value of industry to $146M by 2019 –
increase production AND increased price
• build capacity, leadership and confidence in
the industry
What?
A national incorporated body
formed by Australia's community
of oyster growers

4. OA R & D Projects Completed
Supply Chain
Analysis
Selective
breeding
Enterprise
Analysis
Cool-chain
Data Analysis
Consumer
Research
EBVs &
breeding
tools
Oyster
Performance
Benchmarks
Cool chain
data
loggers
Chain Info
&
Investment
Oyster
Retail
Test
Products in
Markets
Oyster
Condition &
Survival
Traits
POMS
Resistant
Traits
Stock for
sale with
Benchmarking
Extension
Benchmarking by
Commercial
Operator
Refrigeration
Index
(vibrio growth)
Smart Data
Logging
in-demand
traits
Improved
business
performance
Safe
Attractive
Seafood

5. R&D good for Tas?
Spend: 60% on breeding & prod’n techniques (50:50 SRO:Pacific)
Status: Breeding for condition + disease resistance + fast growth.
Spend: 20% on supply chain/market (across species)
Status: Vibrio index – predictor of spoilage. Consumer research
results. Oyster retail package – to commercialise
Spend: 6% on benchmarking (across states & species)
Status: Current program improving profitability
Spend: 12% planning (25%) and managem’t/communicat’n (75%)
Status: Oysters Australia managing & explaining R&D spend

6. Oyster Marketing Project
Sam Hutchison
Retail Business Manager
De Costi Seafood

7. Background

8. The Project
Oysters Australia
Rachel King & Trudy McGowan
Australian Seafood Co-operative Research Centre
Miles Toomey
University of the Sunshine Coast
Meredith Lawley
De Costi Seafoods
Sam Hutchison

9. Trial Stores

10. Full Treatment
POS materials
and
demonstrator
Merchandising trays, stickers, brochures, posters and
demos:
STORE 1:
17.5% sales growth ($)
5% store growth ($)
STORE 2:
10% sales growth ($)
4% store growth ($)

11. Mid Treatment
POS materials
only
Merchandising trays, stickers, brochures and posters
STORE 1:
6% sales growth ($)
4% store growth ($)
STORE 2:
Awaiting data analysis

12. No Treatment
No POS
treatment
Business as usual. No promotional material/activity
whatsoever:
STORE 1:
Oyster sales decline ($)
Store sales decline ($)
STORE 2:
Oyster sales stagnant ($)
Store sales stagnant ($)

13. POS Promotional Materials
The POS promotional materials investigated included:
• Oyster trays (display cabinets)
• Recipe/Information brochure
• Oyster posters
• Stickers for packaging
• Demonstrations/sampling

14. POS Promotional Materials

15. POS Material – Tray Labels

16. POS Material - Sticker

17. Research Objectives
• Measure the impact on the purchase of oysters
a) POS promotional materials
b) POS demonstrations/sampling on the
purchase of oysters
All POS materials received a positive rating
and had a positive impact on intention to
purchase
86% of consumers indicated it was “highly
likely” that an oyster demonstrator would
influence their purchase decision
17

18. Research Objectives
• Explore the differences in consumer types and
buying habits (planned vs impulse) with the
purchase of oysters
For 2/3 consumers oysters is an impulse
purchase
And 2/3 buy oysters in addition to another
seafood
18

19. Research Objectives
• Explore the impact of POS on retail staff and
managers
‘My staff can
now connect
with customers
about oysters’
(Manager)
‘The oyster
presentation trays
attract customers so I
moved the oysters to
a better position in
the display cabinet
which has increased
sales’
(Manager at Store 4)
19
‘All of my staff
are now learning
how to shuck
oysters’
(Manager)

20. Next for Oyster Retail project?
1. Check on right track
Supply chain (production, consolidation, wholesale and retail)
view:
Priority 1: Improve information available (through chain) on
provenance, flavours, handling, storage, etc so that consumer
expectations are better met
Brand Council’s advice: Better understand oyster positioning and
use provenance imagery to ‘romance’ the oyster
2. Cost benefit analysis
3. Commercialise

21. Tas, Australia . . .on same page?
Imaginary spend to buy better profitability
NSW ($)
On
farm
SA ($)
Tas ($)
National
average
15
8
7
7
8
7
9
8
Reducing costs of farming
Availability of labour & training
Breeding better oysters
Manage & protect against disease
Ensure shellfish safety & market
access
Improved path to market
A better returning market
Off
farm
Protect ability to farm
Tenure security & ability to borrow
capital against assets
11
2
27
14
5
10
5
32
23
7
9
3
24
31
12
11
4
24
22
8
2
16
100
5
5
100
3
4
100
4
10
100

22. Tas, Australia . . . . hide or invest?
Not many growers are
making much & the
risks to production are
at an all time high.
*Benchmarking results: Costing in
allowance for owners wages in NSW
makes NSW look worse

23. Tas, Australia . . . . hide or invest?

24. Tas, Australia . . . . hide or invest?
What’s the competition up to?

25. Big picture? . . . . what do other industries do?
Meat (national) –
domestic, export,
meat processors
Australian eggs:
R&D 7.8c/laying hen
promo 32.5c/lay hen,
emergency – varies
Australian avocados:
$0.075/kg, Processing
$0.01/kg (2.5%
turnover)
Vegetables (national):
0.5% value at next
transaction point
(0.50% turnover)
Oysters (state):
R&D 0.25% GVP / ha +
extra in SA & Tas
Promo $0
Emergency $0
Possible via Federal legislation – state R&D levies don’t allow this

26. Big picture? . . . . what do SA & NSW think?
Q. (to NSW & SA) Are you interested in taking advantage of
replacing state R&D levies with a national levy (ie taking
advantage of Federal legislation) and how they wanted it to
work . . .
A. Some ‘yes’, most unsure until they see mechanics, details
& costed proposal

27. Big picture
+ Direction until 2019: 2014-2019 Strategic plan
+ Industry taking the lead on use of its funds: Oysters Australia to
sign on to a FRDC industry partnership agreement
+ More bang for buck: Oysters Australia to be part of bid for
2015-2022 Seafood CRC in 5 potential investment areas;
• Early warning of oyster health via biotag
• Breeding for oyster resilience (POMS, climate change impacts . . .,
adaptation of new technology)
• Early warning for toxic algae + cheaper norovirus sampling?
• Oyster ‘information’ through chain & for consumer
• Processing technology to remove labour bottlenecks & improve onshelf quality AND/or ‘launch’ of unopened oyster on to Australian
market

28. Immediate picture
Norovirus survey:
Oysters Australia’s OK to ‘survey’ Australian waters for norovirus
as per international requirement
POMS resistance sooner than 2018? :
Oysters Australia’s OK on project proposal aiming to fast track
breeding of a 70% POMS resistant animal (non spat) BUT need to
know:
1. Growers want a POMS resistant oyster?
2. Willing to invest it?
. . . . .Over to Peter Kube & Matt Cunningham

29. Something you missed?
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Thanks to
& partner R&D providers